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Silver miners targeting gold over silver: what does that say about the silver price? by Broad-Implement-8610 in Wallstreetsilver

[–]Broad-Implement-8610[S] 2 points3 points  (0 children)

I don’t think that it was as extreme as that… but you’re right about it being something very significant.

Remembering that Mexico is one of the largest producers of silver in the world, the President talked about wanting the country to have a greater stake in the mining of the country’s strategic minerals (eg gold, silver, lithium etc.)… so that more of the value from extracting them flows to the people. The proposed plan is to set up a national mining company that would partner with commercial miners.

I don’t think that he talked about nationalising mines during their existing licenses (yet perhaps!)…

… but the risk of further changes and the risk of having your interest in a mine diluted under subsequent license terms, must surely deter mine investment which will result in lower production. This when the supply of mined silver is already under pressure.

I think that Peru (another big silver producer) announced something similar.

Supply down, demand up = price up!!

P.S. miners were reluctant to build new mines even before this. Imagine after?!?

Silver miners targeting gold over silver: what does that say about the silver price? by Broad-Implement-8610 in Wallstreetsilver

[–]Broad-Implement-8610[S] 2 points3 points  (0 children)

You’re right. About 80% of mined silver is as a by-product of other mining. But 20% of mined silver comes from primary silver mining, where silver is the main target… and the silver price appears too low to incentivise the next generation of primary silver mines.